Our Montreal office advised SNC-Lavalin Group on its 2022 initiative to replace and extend its existing syndicated credit facilities, which will result in reduced overall borrowing costs, contingent upon the company achieving certain environmental, social and governance (ESG) targets. 100% of the savings realized because of the company’s ESG results will be directed towards initiatives that further advance SNC-Lavalin’s ESG strategy. Pursuant to the agreement, the revolving credit facility is reduced from C$2.6bn to C$2.0bn, and will be further reduced to C$1.8bn in April 2023. The term loan is unchanged at C$500m.

The credit facilities incorporate a sustainability-linked loan framework, to align with SNC-Lavalin’s leading ESG initiatives and resulting in borrowing savings upon achieving certain sustainability performance targets. The relevant targets are aligned with the enhanced targets from SNC-Lavalin’s latest Sustainability Report. These targets will be based on the achievement of:

  • Reduced greenhouse gases emissions by 60% by 2025, using 2019 as a baseline year
  • Increased diversity within our workforce, focusing on achieving 25% of women representation in managerial and senior professional roles by 2025

This transaction demonstrates Norton Rose Fulbright’s capabilities in sophisticated new structures involving ESG features. 

Industry:

Practice areas: